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Where should I invest in stock market before fed increases interest rates?

So, I am new to the whole stock trading deal. Today is my first day so I am starting slow. I have purchased 3 stocks in Apple and 2 in United Health Group. Since I am a beginning, I only have 1,000 dollars in my portfolio, I bit less now that I bought 5 stocks. I am looking for 1 more company in a different industry to trade in.

Which industries or companies should I invest in that will give me a big profit after the fed increases interest? Should I invest in banks like chase or citi? Should I invest in utilities, food, resources?

Please help a rookie! How can you say no to this face? :(

7 Answers

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  • John
    Lv 5
    5 years ago
    Favorite Answer

    Apple are okay, they have a good growth record, and dividend increase, until this year that is.

    They currently pay around 1.5%, dividend, and there is the rub, you are looking at 3 years time before they pay anything decent on this year's purchase. However stick with it as it isn't bad just not good?

    Are you electing to have the dividend payment in more shares not ca$h, you should because then you benefit from compound interest, on compound interest.

    United health Group are similar, they pay 1.7% an seem to have a good growth record so stick with them.

    However, Proctor and Gamble pay 3.76%, and have increased their dividend for the last 58 years.

    Yes you read that correct, and their growth while not outstanding, is steady and good, and higher than most.

    Again look at having the dividend paid in more shares.

    Look for a low P/E ratio, high % payout with good growth over the long term.

    And as a check the company should have a high ROCE, Return on Capital employed.

    Read some books on Warren Buffet, and what and how he invests.

    Fed Interest rates can be ignored long term.

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  • 5 years ago

    Having $1000 in your portfolio is not much and you are not going to see any big gains with that small of an investment I am sorry to say. I am not experienced myself but I have an excellent mentor. What you need to do is read up on investment strategies more than just randomly pick stocks. Do homework on the stocks you are interested in. If you can watch Squawk on the Street, Squawk Alley and Mad Money all of these shows give you a lot of information on stocks. You should have much more in your portfolio saved to play the market as to make any large $$$ gains "it takes money to make money." You have to learn strategies of when to sell and when to buy. There is value to knowing when to "buy low and sell high." Also, there is an entry fee to playing the stock market and you have to know that going in...you will lose money. But you also have to have enough money you can tolerate when you are losing $400-$600 a shot for example. . You also must know how long to keep stocks rather than holding onto a stock just because you love the stock or you will get burned. Sign up for a brokerage company that has classes on investing. Also they have Virtual Trading which is an excellent way to learn the ways of the stock market for the beginning trader.

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  • Jeff T
    Lv 6
    5 years ago

    With only $1,000 to invest, the brokerage fees are going to eat a big percentage of your gains.

    If you buy 10 shares at 100 and a year later they're trading at 108, that's an $80 gain. But you spent $10 to buy, and another $10 to sell. So your 8% looks like 6% after fees.

    And since you split among four stocks, you paid $40 to buy and will pay $40 to sell. Now that 8% gain looks like a break even.

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  • Anonymous
    5 years ago

    You're not going to earn "big profit" from a Fed rate increase. And you're not going to earn much return buying just a few shares (not "stocks") at a time. Until you have more funds to invest, stick to a good no-load mutual fund.

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  • Anonymous
    5 years ago

    Keep the money as a security blanket and dont buy stocks until you have 5k or 10k to invest. Jmo

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  • Amy
    Lv 7
    5 years ago

    Yes, banks could benefit.

    Other than that, the market will fall if the interest rate increases.

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  • Anonymous
    5 years ago

    "Please help a rookie"

    Yes and rookie is going to lose his/her shirt. Individual stocks are for the experienced, mutual funds are for the beginners!

    Educate yourself yours is the act of a foolish person.

    • I didn't ask for your opinion of me investing in stocks. I asked for which industries benefit from interest rate increase.

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